Taking Stock With Teens

Shopping Behavior and Brand Perception Surveys

A “bottom” may be forming in the two and one-half year “discretionary recession” as total teen spending on fashion increased by a modest 1 percent on a year-over-year basis, according to the 16th semi-annual "Taking Stock With Teens" research survey released Oct. 7, 2008.

The study, which tracks the purchasing behavior and brand preferences of teenagers, was conducted by senior retail research analyst Jeff Klinefelter and the retail research team. This fall, the team surveyed 850 students using in-class, electronic and in-store surveys during classroom visits and mall research field trips in 10 cities across the United States. Piper Jaffray also captured an additional 6,800 online survey responses through the national DECA organization, which partnered with the retail research team for the eighth time.

"Our national school survey indicates total spending on fashion is essentially flat with last fall," said Klinefelter. "While it may be too early to call an inflection point, the results of the survey may point to an improvement in spending on this category within the next six to 12 months. Historically, fashion replenishment cycles have lasted three to five years, followed by transition cycles lasting another two to four years."

Key findings from the survey include the following:

  • The Piper Jaffray retail research team notes that total spending trends were stronger for young women on a year-over-year basis, up 6 percent from fall 2007, but slightly weaker on a sequential basis with a 7 percent decline. Spending trends among young men were consistent on both a year-over-year and sequential basis at a 3 percent decline.
  • West Cost Brands (e.g. Pacific Sunwear, Volcom, Quicksilver, Zumiez) took the No. 1 spot in clothing brand preferences among teens, followed by Hollister, Forever 21, American Eagle and Abercrombie & Fitch. Specifically among brands ranked by young women, Forever 21 took the “most preferred” position, while West Coast Brands continued to remain a favorite about young men.
  • Piper Jaffray also polled nearly 150 parents on the amount they spend either on themselves or on their teens. Spending on teens increased 9 percent year-over-year and 23 percent sequentially as parents indicated that annual spending on teen apparel totaled $1,085 versus $883 in the spring 2008 survey and $995 in fall 2007. The results also indicated that parents’ annual spending on their own apparel increased 17 percent sequentially and 15 percent year-over-year.

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